Canada moves on

Tuesday

Feb 4, 2014 at 6:00 AM

Faced with a difficult decision on the Keystone XL Pipeline, an issue that has sharply divided many of his usual political allies, President Obama has simply delayed making any decision at all for well over two years. If that amounts to a strategy, it's one that may soon pay off.

The administration's own comprehensive review of the pipeline proposal, which was completed and delivered last week in 11 volumes, has found that the impact on the environment and global climate change would be insignificant.

That's bad news for environmentalists who have tried to paint the Keystone project as a death blow for Earth. But it also means that Mr. Obama is probably off the hook, politically, no matter what he does.

If the president approves construction of Phase 4 of the Keystone XL project, which would deliver additional crude to refineries in the U.S., he can point to this report for support. Some environmentalists will be upset, but his union supporters will be delighted, since the project is expected to create thousands of jobs.

If Mr. Obama rejects Keystone, environmentalists will cheer while union workers lament, but the impact on the North American economy will be slight, because while Mr. Obama has been busy not deciding, the oil industry has been moving ahead with production.

Canada is planning major pipelines to send crude oil to both its Pacific and Atlantic coasts, for transport to foreign markets. And some crude from Alberta continues to flow into the U.S. by existing pipelines and rail systems.

On balance, pipelines are safer than rail transport, and oil sands extraction, while still a messy job, is being conducted in a more environmentally friendly and efficient manner than in the past. Most importantly, stopping Keystone XL won't stop development, but merely redirect some of the jobs and economic gains from the U.S. to other places.

This should be an easy call for Mr. Obama, particularly with key Democratic lawmakers clamoring for approval that would bring economic development and badly needed jobs to their states. A proactive move would bolster Mr. Obama's economic record and leadership.